AG Brown Joins Coalition to Defend HUD's Anti-Discrimination Rule

Attorney General Anthony G. Brown has joined a coalition of 19 state attorneys general in filing an amicus brief urging a federal court to uphold the Department of Housing and Urban Development's (HUD) Discriminatory Effects Rule. This rule holds insurers and other parties accountable under the Fair Housing Act for housing practices that may have a discriminatory effect on individuals in protected classes, even if discrimination was not intentional. This form of discrimination, known as "disparate impact," is at the center of the case.

The homeowners insurance industry is challenging the rule, arguing that HUD should exempt them from liability when their state-authorized pricing and underwriting practices result in discriminatory effects. The insurers contend that federal fair housing laws should not apply if state-level insurance laws allow those practices.

In response, Attorney General Brown and his colleagues argue that HUD's rule is essential to preventing housing discrimination and that it complements state anti-discrimination laws in many states, including Maryland. They assert that the industry's request for a blanket exemption would undermine efforts to address discriminatory practices in the insurance market.

The coalition of attorneys general previously filed a similar brief in 2023, which the trial court acknowledged as "significant" in its decision to uphold HUD's rule. The current brief, filed with the U.S. Court of Appeals for the Seventh Circuit, continues to oppose the insurance industry's challenge.

In this case, Attorney General Brown is joined by attorneys general from 18 other states and the District of Columbia.